Norwalk Bankruptcy Attorneys Focus on Student Loan Modification
Student Loan Modification and Bankruptcy: Connecticut Law Firm Experienced in Both
It can be very difficult to discharge student loan debt in bankruptcy unless the borrower files an undue hardship petition and it is granted by a judge. However, most borrowers are unlikely to successfully obtain an undue hardship discharge in part because Congress never defined what is meant by an undue hardship, leading to arbitrary and unpredictable bankruptcy court decisions.
Student Loan Modification and Flexible Repayment Plans
If you have federal student loans, you might qualify for one of the flexible federal repayment plans now available. While private student loans will not be eligible for these flexible repayment plans, you might still be able to negotiate a loan modification with your private student loan lender. Although lenders are under no obligation to grant modifications, they would often rather renegotiate the terms of a loan than allowing a borrower to default on his obligation.
Reaffirmation Maybe an Alternative
Reaffirmation agreements are not required in bankruptcy and are voluntary, but there may be certain circumstances when they make sense. Communication with loan servicers can be key in protecting your credit and managing your student loan debt. If you experience a change in financial circumstances that enable you to return to making payments, you need to let your loan servicer know immediately. The loan servicer can then take you through the steps to determine your monthly payments and return your loan status to “in repayment” again.
Contact Our Connecticut Bankruptcy Law Firm Today
If you are facing bankruptcy and considering requesting a student loan modification, Lisa Gustafson has successfully represented Connecticut residents in bankruptcy actions for many years. Contact our firm online or call 203-938-0119 to schedule your free initial case evaluation today.